Private lender finance, placed across private lenders in Australia
Short-term funding from a private lender, secured against property by mortgage or caveat. The fastest option on the panel, for business purposes.
A private lender is a specialist source of funding, a private credit fund or a private financier, that lends against property when speed matters more than the lowest rate. Private lending is the fastest money on the panel and the most expensive, secured by a registered first-ranking mortgage, by second-ranking security behind an existing lender, or by a caveat over the borrower’s interest. Where a bank reads your full credit file, the lender reads the security and the exit, so it funds deals a bank cannot reach in time, an alternative to going direct.
Windsor Finance is a mortgage broker, not a lender. We hold no own capital and approve nothing. We take your deal to private lenders and banks across the panel, then place the funding solution that fits the security, the pricing and the timeline. Private and caveat lending is overwhelmingly business-purpose lending. Windsor arranges it for property developers, investors and Australian businesses on a signed business-purpose declaration, and every fee is disclosed in writing before you commit.
Key facts
- Indicative cost ~9-18% p.a. or priced monthly, plus establishment fees
- Loan terms 1 to 24 months, often interest-prepaid or capitalised
- Settlement in days where the security and the exit are clean
| Scenario | Indicative rate | LVR |
|---|---|---|
| First-ranking security | ~9-14% p.a.* | By case |
| Second-ranking security | ~12-18% p.a.* | Behind existing |
| Caveat loan | Often monthly* | By case |
Cost calculator
How private lending works and how the funding is secured
A private loan works on the security and the exit, not a long credit assessment. The lender takes first-ranking security, a second-ranking position, or a caveat over the title, sets the advance against a conservative LVR, and funds fast because a small credit committee decides, not a bank’s full underwriting chain. A facility secured against real estate carries the lowest pricing; a caveat or a position behind the existing debt prices higher. Most facilities run 1 to 24 months with interest prepaid or capitalised, so there are no monthly repayments. The exit, a sale, a refinance, or an asset maturing, repays it.
When private finance fits, and the types of private loans
This kind of funding fits where a bank is too slow or too rigid. The common forms are a first-ranking facility for a fast settlement, second mortgage loans to release equity behind an existing lender, a caveat facility for short-term working capital secured against property, and a bridge while a longer-term facility is arranged. A property developer uses private and mezzanine finance to fill a gap in the capital stack on property development, and development loans are a core use for developers across Australia. A trading business uses secured business loans against real estate for cash. Across these, the lender offers an alternative to traditional banks: flexible terms set against the security, not a rigid policy box.
Private lending rates, fees and loan terms
Private lending is the most expensive money on the panel, the trade for speed and certainty. Indicatively, a first-ranking facility runs around 9% to 14% per annum; a second mortgage around 12% to 18%; a caveat facility is often quoted as a monthly rate. Establishment fees, legal costs and a valuation apply on top, and interest is often prepaid or capitalised. The headline rate matters less than the total cost over the term: a facility held three months costs roughly a quarter of its annual rate, weighed against losing the deal. We model it against the exit and confirm the terms in writing before you commit.
What private lenders fund, from commercial property to development
A private financier funds against real estate the major banks set aside. Loans secured against real property cover residential property for a fast investment settlement, commercial property and commercial finance for owner-occupiers and investors, and an equity release behind an existing facility to free cash for the next deal. Property developers and investors use these lending solutions for site acquisition, a bridging loan into construction, and development the banks will not fund in time. As that market grows, more loan lenders offer direct lending against property, and these private lenders offer rates and flexible terms a major bank cannot. The trade-off is honest: pricing reflects taking on more risk and gives fast funding, so a loan secured against a property settles in days, not weeks. We compare the panel, from a leading private lender to a smaller specialist, so the loan approval lands on terms that fit. Whether you sit in Sydney, Melbourne or a regional market, the same loan options and loan solutions apply across loans in Australia.
Private lender vs a bank loan
A private loan and a bank loan solve different problems. One funds fast on the security; the other is slower, cheaper, and underwritten on your full position.
Private lender
- Funds in days on the security and a clear exit
- Secured by a registered charge or a caveat over property
- Short terms, 1 to 24 months, interest often prepaid
- Higher rate, paid only for the months you hold it
- Business-purpose lending on a signed declaration
Bank loan
- Funds in weeks on full underwriting and serviceability
- Usually first-ranking security only
- Long terms, principal and interest over years
- Lower rate, read against your credit history
- Regulated where the purpose is personal or household
When private and caveat lending fits
Secured against property when a bank cannot fund in time.
A facility a bank could not arrange before the deadline.
Short-term funding while a term loan is arranged.
What borrowers ask first about a private lender
Is private lending legal and regulated in Australia? +
How quickly can it fund? +
Can I borrow with a low credit score? +
Common questions
How are private loans repaid? +
What security is taken? +
What is a caveat loan? +
Speak to a broker about a private mortgage
Tell us the property, the loan size and your exit. A broker comes back with indicative private lender loans, with the fees set out in writing. Structuring and shortlisting cost nothing until you give the go-ahead.